Farm Loan

Loans for farms may be done using banks and non-banks within Australia. In many cases, lenders want to distinguish between:

• An investor buying a farm and renting the property to a farmer, or
• An owner operator of the farm property.

• You can either borrow up to 70% of the value of the property or add a commercial property to the loan and borrow up to 100% of the value of the property
• Low docs loans are eligible with a lower LVR
• Maximum loan amounts of up to $100 million can be considered on individual basis
• Agribusiness line of credits can be used
• Turf farm loans can also be provided
• Finance Stock can be approved based on the quality available within the property
• Equipment and asset finance can be done to finance farming equipment using either or the following
  • Chattel Mortgage
  • Finance lease
  • Commercial hire purchase

When you are looking to buy the land freehold and run a business on it you will need:

• Evidence of your experience within the industry
• A detailed business plan forecasting cash-flow, marketing strategies, any potential completion
• Business activity statements, bank statements and ATO tax portals
• If you are just buying the land freehold, you need to show that you can actually service the loan using income streams that can be measured.

• The actual farm property. These are usually zoned as rural or agriculture or a combination of zones
• Residential security
• Assets that are a part of the farm (such as tractors, cattle, farm equipment etc.)
• Depending on the value given to your farm, as well as your overall experience in running a farm, banks may require you to provide yearly reviews as to how the business is going.